All of the Following Conditions Must Exist for Partnership by Estoppel

question 14

Multiple Choice

All of the following conditions must exist for partnership by estoppel to exist EXCEPT

• A)one partner agrees not to share in the profits of the enterprise.
• B)participants tell other people they are partners even though they are not.
• C)a third party believes and relies upon the assertion that participants are partners.
• D)a third party suffers harm because he or she believed a partnership existed.

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Definitions:

Jurisdiction

Jurisdiction refers to the official power to make legal decisions and judgments, often within a specific geographical area or over certain types of legal cases.

Close Corporations

Close corporations are privately held businesses where all shareholders are typically involved in the day-to-day operations, and shares do not trade publicly.

Veils Are Pierced

A legal metaphor used when courts look beyond the protection usually afforded by the corporate entity structure to hold individuals (e.g., directors, shareholders) personally liable for corporate debts or actions.

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, thus holding a portion of the corporation's ownership and often entitled to a share of the corporation's profits and voting rights.